- The EU’s framework for systemically important payment systems and central securities depositories/securities settlement systems is complete and consistent with the CPMI-IOSCO Principles for financial market infrastructures (PFMI) in most aspects.
- The CPMI-IOSCO assessment identified some areas for improvement where implementation was broadly or partly consistent or not consistent with the PFMI.
- The assessment reflects status of implementation as of October 2019. A separate assessment is to be conducted for the United Kingdom.
The Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) released a report on implementation monitoring of Principles for financial market infrastructures (PFMI): Level 2 assessment report for the EU – PSs and CSDs/SSSs.
The report finds that the implementation of the PFMI is complete and consistent for all Principles for PSs. The legal, regulatory and oversight frameworks in the EU for CSDs/SSSs are complete and consistent with the Principles in most aspects.
However, the assessment identified some areas for improvement, particularly in aspects where implementation was broadly, partly, or not consistent, including risk and governance principles.
According to the report: “There is a minor potential gap with respect to the requirement for prompt access to the assets provided by participants, where participants provide collateral as a security interest or non-cash assets are placed in a guarantee fund and those assets are not held in the CSD/SSS operated by the CSD.”
“EU authorities are recommended to implement measures to address the gaps or inconsistencies.”